India's aerospace sector set to grow at twice global pace, hit $40 billion by 2030

India's aerospace sector is forecast to triple to $40 billion by 2030, growing at twice the global pace, per an Arkam Ventures report released Oct 22. Space startups raised $256 million in 2026 and could attract $3.5 billion over five years.

India's aerospace industry is on track to expand at twice the pace of the global market, powered by state-backed reforms, rising private capital and deepening collaboration with ISRO, according to a new report released on October 22. The sector, currently valued at $13 billion, is forecast to more than triple to $40 billion by 2030, with some projections placing the space economy at $44 billion by 2033.

The report, citing analysis from Arkam Ventures, attributes the trajectory to policy tailwinds, cost-competitive manufacturing and deep engineering talent. Private firms are expected to participate in up to 45 launches a year for international customers by 2030 and manufacture as much as one-third of the world's earth-observation satellites, while India is tipped to become a major exporter of avionics, GNSS equipment, SATCOM systems and ground RF infrastructure.

Private investment is surging: cumulative private investment has reached $600 million, space startups alone raised nearly $256 million in 2026, and the segment is projected to attract up to $3.5 billion in venture capital and private equity over the next five years. The report cautioned, however, that execution risk -- securing recurring global launch contracts -- remains the sector's central challenge.